Russia and Greece are to sign a memorandum of cooperation on the construction of a new pipeline in the Turkish Stream project which will deliver Russian gas to Europe via Greece, according to the Greek energy minister.

The memorandum is expected to be signed in the next few days,
Greek Energy Minister Panagiotis Lafazanis said in an interview
with the Sputnik news agency, adding that the pipeline would be
not only a route between Greece and Russia but would as well be
very important for Europe.

“The visit of the government delegation, the meeting of
Tsipras and Putin open the way for the pipeline which will begin
at the border with Turkey and end at the border with Macedonia in
the direction of Central Europe. This pipeline is extremely
important for energy security and cooperation in Europe,"
Lafazanis said.

The minister said that Athens expected to "receive
significant financial dividends for the pipeline's
operations,” and that the pipeline will bring “extremely
important profits to Greece, first of all, cheaper gas.”
Currently Russian gas covers 66 percent of Greece’s energy needs.

The Turkish Stream gas pipeline could help Greece become one of the main
energy distribution centers in Europe, Russian President Vladimir
Putin said on Wednesday during his meeting with the Greek
delegation. Athens could earn hundreds of millions of euro
through gas transit annually if it joins the Turkish Stream
pipeline project, he added.

The Russian President also stressed that Greece could use
revenues from potential joint projects with Russia to pay off its
debt to international creditors.

Prime Minister Alexis Tsipras, who was in Moscow on Wednesday on
an official visit, voiced his interest in the project as he sees
it as a way to boost jobs and investment in the country.

Turkish Stream Project

In December, the CEO of Russian energy major Gazprom Aleksey
Miller announced the construction of the Turkish Stream
pipeline to Turkey with an annual capacity of 63 billion cubic
meters of gas. Around 14 billion cubic meters of gas are to be
supplied to Turkey, with the rest being pumped to a hub on the
Turkish-Greek border for customers in Europe.

The new pipeline running under the Black Sea replaces the South
Stream project. Last year, Russia scrapped South Stream because
of objections from the EU over its construction. It was to supply
gas to Southern Europe via Bulgaria, avoiding Ukraine. Instead,
Russia said it would redirect the new pipeline to Turkey.